44-2222. Index-linked variable annuity; separate investment account; treatment.

336 words·~2 min read·/ne/chapter-44/44-2222

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)For purposes of this section, an index-linked variable annuity is a variable annuity that includes index-linked crediting features, either in the contract or added to such contract by rider, endorsement, or amendment, that credit interest based on the performance of an index, subject to index parameters including, but not limited to, caps, participation rates, spreads or margins, trigger or step rates, or other crediting elements, and may lose value subject to limitations including, but not limited to, a floor or a buffer. An index-linked variable annuity may be combined in a single contract with a variable annuity with unitized separate accounts, a fixed annuity, or both.

(2)Notwithstanding section 44-2212 , a separate investment account established to hold assets of index-linked variable annuity contracts may be uninsulated and chargeable with any liabilities arising out of any other separate investment account or any other business of the company which has no specific and determinable relation to or dependence upon such separate account.

(3)If a separate investment account established to hold assets of index-linked variable annuity contracts is uninsulated, then the following provisions shall apply:

(a)Notwithstanding section 44-402.02 , such separate account is not required to have the income, gains, and losses, realized or unrealized, from assets allocated to such account credited to or charged against such account;

(b)Notwithstanding section 44-402.03 , amounts allocated to such separate account and accumulations thereon must be invested and reinvested in accordance with the requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies and the investments in such separate account or accounts shall be taken into account in applying investment limitations otherwise applicable to investments of such company;

(c)Notwithstanding sections 44-402.03 and 44-2213 , assets, other than derivatives, may be held by such separate account, and transferred between the general account and such separate account, at book value or market value; and

(d)Notwithstanding subdivision

(1)of section 44-5103 , the assets of such separate account are admitted assets.